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Customer/Supplier Integration Into New Service Development Salman Mousayi rad Armin Kia Mina Kashefi 1of 37.

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Presentation on theme: "Customer/Supplier Integration Into New Service Development Salman Mousayi rad Armin Kia Mina Kashefi 1of 37."— Presentation transcript:

1 Customer/Supplier Integration Into New Service Development Salman Mousayi rad Armin Kia Mina Kashefi 1of 37

2 Outline Customer need assessment Customer integration Supplier integration Supplier Risk Assessment Suppliers Technology Roadmap Timing of Supplier Integration The Future of Supplier Integration Developing Suppliers Capabilities 2of 37

3 recognition gathering clarification The activities concerned with the recognition, gathering and clarification of customer needs and their importance to determine need specifications and objectives for new products/ service. ensuring fulfilled Sometimes the concept is extended to cover also the activities ensuring that all the important needs are fulfilled Customer Need Assessment 3of 37

4 A Customer Needs Assessment can provide marketers with insight regarding: Where challenges or needs exist Current problems and whether they are expected to increase, decrease, or stay the same in the future The direct and indirect costs of failures Which services or products currently used are the most successful and why Obtain reactions to a new product/service or solution Anticipate future challenges or needs 4of 37

5 Customer Need Assessment Matrix A word or phrase in the customers terms that states the need, issue or problem to be solved Descriptio n of the customers desired outcome. Provide the reason that the attribute is important to the customer. List the customer requirements in qualitative, quantitative, or comparative terms.. A numerical rating or ranking designation the importance of the outcome to the customer A numerical rating of how satisfied the customer is with the outcome when the services are offered 5of 37

6 Better ability to recognize customers future needs Improvement of direct contacts and cooperation between the service development and customers More organized and careful co-operation with the most advanced lead-customers Development Needs 6of 37

7 NHS South West Essex case Conducting Research Service reconfiguration Questionnaire The new service pathway is outlined in the following steps: Referral and health needs assessment Service Selection Lifestyle Modification 7of 37

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9 Why Supplier Integration is important Strong link between supplier involvement and team performance Contribution of suppliers in competitive advantage specially in R&D researches Studies found performance improvement outcomes from supplier integration Length of buyer/ supplier relationship has a positive effect on product/ service development efforts 9 of 37

10 most important Factors in supplier assessment Understanding the focal suppliers capabilities and design expertise Conducting a technology risk assessment Weighing the risks against the probability of success 10 of 37

11 Key questions in supplier integration Which suppliers should be involved? Is the supplier able to meet our requirements? Is the suppliers technology roadmap aligned with our technology roadmap? Given the level of technical complexity, to what extent should the supplier be involved in the project? When should the supplier become involved in the project? 11 of 37

12 Supplier Integration Approaches 12 of 37

13 Design Flexibility and Cost of Design Changes 13 of 37

14 Different Degree of Supplier Integration No Supplier Involvement White boxGray Box Black Box 14 of 37

15 Process Model for Consensus on Suppliers to Integrate into NPD/NSD

16 Identifying Desired Supplier Capabilities and Potential Suppliers In sourcing or out sourcing Specify roles and responsibilities it requires of suppliers selected for new product/service development? selectionnegotiationalignment relationshipmanagement use those primary criteria in supplier selection, negotiation, alignment, and relationship management. Risk Assessment 16 of 37

17 Important factors in considering new or existing suppliers: Targets Timing Ramp-up Innovation and Technology Training Supplier Risk Assessment 17 of 37

18 comprehensive risk assessment What is the likelihood that this supplier can bring the product/service to market? How does this risk compare to other potential suppliers? At what point are we willing to reverse this decision if we proceed, and what are the criteria/measures for doing so? What is the contingency plan in the event the supplier fails to perform? Risk Assessment 18of 37

19 Supplier is able to design and manufacture a prototype or start-up small volume production meet product introduction deadlines ramp-up their production volumes very quickly suppliers must also be able to meet product introduction deadlines and ramp-up their production volumes very quickly Risk Assessment 19 of 37


21 Two options when suppliers capabilities are not at desired levels different supplierdifferent supplier technology is not critical develop and improve the suppliers capabilitiesdevelop and improve the suppliers capabilities technology is critical limited numbers of suppliers Risk Assessment 21 of 37

22 Informal approach – A standard survey augmented by informal evaluations based on face-to- face discussions with the suppliers technical personnel Formal approach – The company audits the suppliers facilities for environmental compliance, quality, technical capability, and cost. Risk Assessment 22 of 37 Assessment of Suppliers Technical Capabilities


24 short-term and long-term alignment - To obtain maximum strategic benefit from the integration of the supplier, companies must share objectives and have complementary future technology plans convergence of the partners technology roadmaps Assessing the Suppliers Technology Roadmap 24of 37

25 To achieve alignment of technology roadmaps with suppliers Sharing information is a critical element of the process. Providing incentive or motivation for suppliers is the second important element. Organizations will need to first build stronger relationships with suppliers: Sharing future product/service plans. In turn, suppliers may need to alter their technological plans to align with those of major customers. Technology roadmap 25 of 37

26 maintain a competitive edge – continuously monitor competitors products, processes, and supply bases – suggest modifications to current sourcing strategies. Technology roadmap 26 of 37


28 Assessing the Rate of Technological Change The rate of change in service technology development and application of critical but non- core technologies The current rate of technological change is challenging many companies capabilities, and they are seeking the help of suppliers with the development and application of critical but non- core technologies in their new services Technology roadmap 28 of 37

29 If a particular technology is changing rapidly, then involving the supplier early has potential pitfalls: the buying company may become locked into a particular design or technology, release the products/services, and discover that the technology has become obsolete or has been replaced by a technology with improved performance characteristics STOP Technology roadmap 29 of 37

30 Timing of Supplier Integration Companies should consider two major factors when deciding when to integrate the supplier : the rate of change of the technology, the level of supplier expertise in the given technology 30 of 37

31 Field studies suggest that certain types of suppliers are more likely to be integrated earlier In general, face-to-face discussions are quicker, and information can be exchanged more effectively At an ICT service provider, the suppliers level of involvement may vary. To get a good quote, the supplier must be brought in early and sit in on the customer negotiation meeting timing 31 of 37

32 Integrate Suppliers at Different Stages 32 of 37

33 The Future of Supplier Integration Service providers expect to increase their use of supplier integration in the future, and to involve suppliers earlier in the development process than they do now On average, the respondents considered the supplier integration have been fairly successful 33 of 37

34 We are currently satisfied with the results of our supplier integration efforts. Expectations about the results to be achieved from supplier integration will increase significantly. Many companies realize the importance of supplier integration, but have not yet perfected the process to successfully implement it. future 34 of 37

35 Developing Suppliers Capabilities Just in the early stages of new service development Working directly with the supplier to identify and resolve problems. Process engineering support, financial support, or even support from within the supplier community itself 35 of 37

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